Porr qb_03_06_engl2.qxp - PORR AG

PRODUCTION OUTPUT
Total production output for the PORR Group in the first nine months of the 2006 fiscal year was €1,611.6
million, exceeding the comparable figure for the previous year by 1.8% or 28.0 million. Of this output volume,
70.6 % (€1,137.2 million) was generated domestically and 29.4% (€474.4 million) abroad. This equates to
an increase in the domestic volume of 2.9% (plus €32.2 million) with respect to the previous year. As of the
reporting date, foreign output had fallen by 0.9% (-€4.2 million).
DISTRIBUTION OF FOREIGN OUTPUT AS OF 30 TH SEPTEMBER 2006 BY COUNTRY
IN MILLION €
160
120
80
40
0
Czech Republic Poland Germany Hungary Switzerland Croatia Other countries
In the table showing foreign output, as of 30 th September 2006 “Other countries” are Bosnia and Herzegovina,
France, Latvia, Montenegro, Serbia, Romania, Slovakia and Slovenia. (2005: Bosnia and Herzegovina, Slovakia
and Slovenia)
2006 2005
Production output by markets
The first three quarters of 2006 continued to see
variation in the development of the PORR Group’s
foreign activities. The Czech Republic established
itself as the group’s dominant foreign market, with an
increase in output of 26.9% to €141.2 million. This
was primarily attributable to building construction
(+76.4% or €29.9 million to €68.9 million), with its
outstanding office and commercial construction sector
(+86.6% to €57.6 million). On the other hand, the
civil engineering output of the TEERAG-ASDAG
subsidiary PSVS was only slightly above the previous
year’s level (+1.5% to €65.1 million). €).
With an increase of 60.4% to €116.6 million in 2006, Poland constitutes the second largest foreign
market for the PORR Group. Traditionally, building construction is also the dominant sector in this market,
lifting output by 42.1% or €24.4 million to €82.4 million. This trend was largely driven by office and
commercial construction, which more than trebled in volume in comparison with the previous year to
€56.6 million. After the completion of only initial road construction works in 2006, civil engineering was
already able to account for just over 10% of total output.
The situation in Germany improved somewhat in comparison with previous quarters. With orders being
processed selectively due to the generally tense economic situation, there was an improvement in the
previous year’s decline in almost all sectors. An output volume of €83.9 million equated to a deficit of
-27.4% or €31.7 million with respect to the previous year, this figure having reached 40% at times.
Last year’s business developments in Hungary were dominated by the M6 road construction project.
Following the completion of this project, comparable output volumes did not eventuate in 2006 as the
subsequent M0 project is only in its initial stages and has yet to witness any significant provision of
services. Consequently, total output in Hungary fell by 41.2% or €42.4 million to €60.4 million. Albeit in
tunnel construction, a comparable situation can be found in Switzerland. A lack of follow-up projects has
meant a decline in production output of 12.4% or €4.2 million to 29.5 million.
In Croatia output has been lifted 33.1% or by €5.6 million to €22.4 million over the previous year, driven
singularly by building construction, in particular of office and commercial construction. In Bosnia and Herzegovina,
Montenegro, Romania, Serbia, Slovakia and Slovenia the group’s market presence is being expanded
incrementally thanks to various small projects.
Production output by sectors
The PORR Group’s civil engineering divisions have been able to significantly turn around the previous year’s
decline in output thanks to the launch of several major projects. Although not compensating completely for
the decline, the total volume of €700.8 million is only 8% or €61.2 million below the previous year’s
figure. The most robust sector is road construction, constituting almost half of all civil engineering activities,
with a volume of €337.3 million (+0.3%).
The group’s building construction divisions relied ostensibly on office and commercial construction projects
(+ 20.1% or €31.3 million to €187.4 million) and residential construction (+20.9% or €23.3 million to
€134.6 million). As only industrial plant construction (-34.5% or €28.1 million to €53.4 million) was
down on 2005, an overall increase in output of 7.1% or €42.4 million to €641.6 million was recorded in
the first nine months of 2006.
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